LEASING BENEFITS
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1 am wiling to you in relation to the feature entitled "Cash in a Flash" (CM13-19 Dec 2001). My concern arises from the opening line of the article, which describes such companies involved in sale and leaseback agreements as "hard up hauliers transforming their trucks into cash".
This is a totally inaccurate description of both Fraikin customers referred to in the article (Butlers Pantry and Crown Cutting Services) and I am keen to point out that these companies entered into such agreements with Fraikin purely for the operational benefits.
Such contracts are becoming increasingly popular with operators as they release valuable capital which can be reinvested in other aspects of the business—new plant and machinery, for example, new electronic communications systems, e-commerce or extra staff etc.
Other benefits include an end to vehicle disposal issues, greatly improved financial forecasting, cost savings, controlled maintenance expenses, less hassle and paperwork, and the immediate availability of back-up vehicles.
That is why many leading companies (who are experts in their own businesses) trust Fraikin to look after their transportation needs which are critical to their success. In these circumstances it is clearly not because they are "hard up" and looking for cash quickly.
David Farban, director, Fraikin Ltd, Lang*, Slough, Berks.
• While many operators clearly use sale and leaseback to release capital, we are more than happy to acknowledge that this was not the reason why the two Fraikin customers mentioned in our article chose to do so—Ed.